< Back to insights hub ArticleESMA releases final report on draft regulatory technical standards under the EU ESG transparency regulation28 November 2025 "The EU Regulation on the transparency and integrity of Environmental, Social and Governance rating activities entered into force on 3 January 2025."The EU Regulation on the transparency and integrity of Environmental, Social and Governance (“ESG”) rating activities (the “Regulation”) entered into force on 3 January 2025. It aims to enhance the transparency and quality of ESG rating activities. The Regulation applies to all providers of ESG ratings, regardless of whether the provider is based in the EU, from 2 July 2026. In order to facilitate the smooth implementation of the Regulation, the European Securities and Markets Authority (“ESMA”) was mandated to deliver draft regulatory technical standards (“RTS”) in the areas of authorisation, recognition, separation of activities and disclosures. In October 2025, ESMA published its final report on the draft RTS. This article examines the key aspects of the finalised draft RTS, which ESMA states have removed or clarified aspects “which could be considered unduly onerous or ambiguous”. In the final report, ESMA expressly acknowledges that the changes made to the draft RTS take into account the wider initiative across the EU ESG regulatory framework to simplify and reduce the burden of regulatory compliance. Key changes following consultation ESMA…
Published: November 28, 2025 2:52 pm
Source: Watson Farley & Williams — Read original